Breaking Down Hang Zhou Iron & Steel Co.,Ltd. Financial Health: Key Insights for Investors

Founded in 1957, Hangzhou Iron & Steel Co.,Ltd. (600126.SS) has grown into a leading Chinese steelmaker with a clear purpose: deliver high-quality steel products while driving sustainability and innovation across its distinctive '2+2' industrial structure; in 2022 the company generated 248.485 billion yuan in revenue and 2.418 billion yuan in profit, managing total assets of 85.409 billion yuan and a workforce of 11,771 as it pursues a vision to become a world-class green building integration service provider, backed by a mission that targets 100% recycling of by-products by 2025, rigorous quality standards, heavy R&D investment, and core values - integrity, communication, excellence, value creation and execution - that steer its strategy as Hangzhou Iron & Steel leverages energy conservation, environmental protection and digital technologies to strengthen its market position and stakeholder value.

Hang Zhou Iron & Steel Co.,Ltd. (600126.SS) - Intro

• Established: 1957
• Listing: Shanghai Stock Exchange - 600126.SS
• Registered capital: ¥5.0 billion
• Major shareholders: Hangzhou Iron & Steel Group Co., Ltd. (90%); Zhejiang Financial Development Co., Ltd. (10%)
• Employees: ~11,771
• Global ranking: 336th in World's Top 500; 99th in China's Top 500

• Deliver high-quality, durable steel products that support national infrastructure and industrial modernization.
• Optimize resource use and reduce environmental footprint through advanced manufacturing and circular practices.
• Create sustainable value for shareholders, employees and local communities while maintaining long-term financial stability.

• Become a leading low-carbon, digitally enabled steel enterprise recognized for product excellence and environmental stewardship.
• Lead innovation in '2+2' sectors-integrating traditional steel strengths with energy conservation, environmental protection and digital transformation to shape future markets.

• Quality First - rigorous standards across R&D, production and supply chain.
• Safety & Environment - proactive investment in pollution control and workplace safety.
• Innovation - continuous technological upgrade and digitalization of processes.
• Integrity - transparent governance and accountable stakeholder relationships.
• People-centric - invest in workforce development and community wellbeing.

• Green Transformation: invest in energy-efficient furnaces, waste-heat recovery and emission reduction projects to align with national carbon goals.
• Digitalization: deploy smart manufacturing, predictive maintenance and supply-chain digitization to improve yield and lower costs.
• Product Diversification: expand high-value, specialty steel products (e.g., coated steels, precision pipes) to capture margin improvements.
• Financial Discipline: balance capital expenditures for modernization with steady dividend and debt management to preserve profitability-evidenced by 2022 net profit of ¥2.418 billion on ¥248.485 billion revenue.

Hang Zhou Iron & Steel Co.,Ltd. (600126.SS) - Overview

• Produce high‑quality steel products that meet international standards (e.g., ISO 9001 quality systems and export compliance).
• Embed sustainability in manufacturing with a target of 100% by‑product recycling by 2025.
• Invest in continuous innovation via R&D programs to raise product performance and production efficiency.
• Maintain long‑term industry excellence by aligning operations and strategy with measurable KPIs.

• Process controls and ISO‑aligned quality systems to assure export and domestic customer standards.
• Closed‑loop material recovery initiatives - steelmaking slag, mill scale and dust - aimed at full reclamation by 2025.
• Targeted capital and operating expenditure toward low‑emission furnaces, waste heat recovery, and water reuse projects.
• R&D collaborations with universities and technology partners to reduce cycle times, enhance alloy properties, and improve yield.

Hang Zhou Iron & Steel Co.,Ltd. (600126.SS) - Mission Statement

• Deliver high-performance steel products and integrated building systems tailored for green construction projects.
• Accelerate decarbonization across production and supply chains through process innovation and circular-materials use.
• Create long-term shareholder value through disciplined capital allocation, margin improvement, and service diversification.
• Foster partnerships with developers, architects, and municipalities to scale green building adoption.
• Ensure workplace safety, employee development, and community engagement as core operational priorities.

• World-class aspiration: Align product and service quality with leading global standards (ISO, LEED, BREEAM equivalents).
• Green building integration: Offer end-to-end solutions - from low-carbon steel inputs to prefabricated modules and on-site integration.
• Market positioning: Target urban redevelopment, public infrastructure, and export markets where green building mandates are accelerating demand.
• Innovation focus: Invest in digital design, modular manufacturing, and steel recycling technologies to reduce embodied carbon.

• Product & Service Diversification - expand prefabrication and integrated building service offerings.
• Operational Decarbonization - retrofit plants, electrify processes where feasible, and scale scrap-based steelmaking inputs.
• Quality & Compliance - attain international certifications to facilitate global project participation.
• Customer Solutions - develop bundled financing, warranty, and performance-guarantee packages for green buildings.
• Talent & Culture - develop skills in BIM, modular construction, and ESG project delivery.

• Integrity - transparent governance, compliance with regulatory and ESG disclosures.
• Customer-centricity - tailor-made solutions and lifecycle support for building owners.
• Sustainability - minimize environmental footprint across product lifecycles and prioritize recycled inputs.
• Innovation - continuous improvement in materials, processes, and digital delivery.
• Collaboration - strategic alliances with design firms, developers, and public agencies to scale green solutions.

• Reduction in CO2 intensity (% year-over-year).
• Percentage of revenue from integrated green building services.
• Prefabrication module throughput and on-time delivery rate.
• R&D spend as a percent of revenue and number of green patents filed.
• Customer satisfaction and repeat-project rate for integrated solutions.

Hang Zhou Iron & Steel Co.,Ltd. (600126.SS) Vision Statement

• Integrity and dedication: Upholding ethical conduct across operations, governance, and supply relationships; embedding responsibility in every role from mill operations to executive decision-making.
• Respect for communication: Promoting transparent, timely internal and external communication to accelerate problem-solving and align strategic priorities.
• Pursuit of excellence: Driving continuous improvement in product quality, cost efficiency, and process optimization through targeted investment in R&D and digitalization.
• Creating value and taking responsibility: Delivering measurable value to shareholders, customers, employees, and communities while assuming accountability for environmental and social impacts.
• Obeying execution: Ensuring rigorous follow-through on operational plans, safety protocols, and investment roadmaps to convert strategy into sustainable performance.

• Environmental transition: Invest in energy-efficiency retrofits and sintering/gas cleaning to lower CO2 intensity per tonne of steel.
• Quality and technology: Expand product mix toward higher-margin, specialty steel for automotive and appliance sectors through targeted R&D.
• Governance and transparency: Strengthen internal controls, compliance, and stakeholder reporting to reflect integrity and accountability.
• Operational excellence: Implement digital steelmaking initiatives (MES/ERP) and lean manufacturing to improve yields and execution fidelity.

• Shareholders: Sustainable dividends and disciplined CAPEX to support long-term returns.
• Customers: Stable supply, higher-quality products, and technical partnership for application-driven steel solutions.
• Employees: Safety-first culture, skills development programs, and performance-based incentives aligned with execution.
• Communities: Local employment, pollution controls, and participation in regional economic development.